CME FedWatch Predicts Federal Reserve Interest Rate Movements

2 mins mins

Key Points:

CME FedWatch data forecasts next interest rate actions, deeply analyzing probabilities.
75.6% probability of unchanged rates by January.
24.4% chance of a 25 basis point rate cut.

According to CME’s “FedWatch” data, the probability of a 25 basis point Fed rate cut in January 2026 stands at 24.4%, with a 75.6% chance of rates remaining unchanged.

The Federal Reserve’s potential rate decisions could significantly impact financial markets, influencing investor sentiment and economic forecasts.

FedWatch Indicates 75.6% Likelihood of Unchanged Rates in January

CME’s “FedWatch” tool, an integral part of market analysis, suggests a diverse range of outcomes for upcoming Federal Reserve meetings. With the Fed’s next sessions set for January and March 2026, the current probabilities reflect a careful balance of possible economic responses.

The current analysis signals potential economic adjustments with a 49% probability that the Fed will maintain rates until March. It also indicates a 42.4% chance for a 25 basis point cut by March. These shifts suggest an interest in sustaining economic stability amid evolving market conditions.

As anticipation escalates, responses from financial analysts and policymakers are mixed. The probability distribution highlights the cautious optimism the market holds regarding the Fed’s monetary policy, especially amid the release of upcoming employment and unemployment data.

The probability distribution highlights that a careful reflection of market sentiments is integral amid dynamic changes in monetary policies.

Historical Performance of FedWatch in Market Predictions

Did you know? CME’s FedWatch has historically been a vital resource for predicting interest rate changes, closely monitored by analysts and investors alike.

CME’s FedWatch has been a vital resource in predicting interest rate changes, historically offering an accuracy that’s closely monitored by analysts and investors alike.

ethereum-daily-chart-2225 — Ethereum(ETH), daily chart, screenshot on CoinMarketCap at 18:42 UTC on December 16, 2025. *Source: CoinMarketCap*

The Coincu research team notes that these potential rate cuts could yield broader market shifts, prioritizing tech growth and reshaping strategies. Given historical trends, swift market movements could occur, demanding cautious financial recalibration.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.